The Securities and Exchange Board of India (SEBI) has proposed an important change that could make donating easier for everyone. They want to lower the minimum amount you need to donate using special “Zero Coupon Zero Principal” (ZCZP) instruments on the Social Stock Exchange (SSE). Right now, the minimum amount is Rs 10,000, but SEBI is suggesting it be reduced to either Rs 5,000 or even just Rs 1,000!
These ZCZP instruments are basically ways for people to donate to non-profit organizations (NPOs) that are listed on the SSE. By making the minimum donation smaller, more people will be able to join in and support these causes.
This idea came about because many people want to give through the SSE but find the current minimum too high. Recently, SEBI has also made other changes to make it easier for donors. In November 2023, they reduced the total amount needed for ZCZP issues from Rs 1 crore to Rs 50 lakh and lowered the minimum application size for donors from Rs 2 lakh to Rs 10,000.
The SSE is a special place in India where social organizations can connect with donors, helping to bring in more money and support. This unique concept was introduced by Finance Minister Nirmala Sitharaman in her 2019 budget speech. Now, SEBI is looking for public feedback on this latest proposal until March 14.
This change could open the door for many more people to become involved and make a difference!
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